New Market Touchstones

Condition has emerged as a chief consideration in the real estate market of summer 2008. Not to say there isn't a consumer for potential-laden fixers, only fewer. (Incidentally, aren't all properties fixers of a sort? I never met one blemish free.)

Initially, I credited this increased emphasis to a growing market conservatism. It's easier, I reasoned, to invest lots of money in needy structures when appreciation outpaces improvement outlays; and, when it doesn't--viola.

But other concerns are contributing to this trend, including a run-up in materials and labor costs. Copper, for example, has nearly doubled in the past five years. Plywood is about five bucks more a sheet than it was pre-occupation, which adds heavily to a roofing bill.

Finally, secondary financing is scarce, home improvement loans, home equity lines defunct. The pay-as-you-go approach, the methodology of yours truly and senior members of the old house crowd, is untenable for many of today's want-it-all-now buyers. Ergo, an increased emphasis on delivery condition.

Condition isn't the only determinative factor in the current market, others I'll cover in Part 2.